MUMBAI: The Reserve Bank on Thursday said it will conduct simultaneous purchase and sale of government securities under open market operations (OMOs) for an aggregate amount of Rs 10,000 crore each next week. The decision was taken after a review of the current liquidity and financial conditions, RBI said in a statement.
Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Sec (government securities) of longer maturities and selling equal amount of G-Sec of shorter maturities.
On December 30, RBI will purchase three government securities of different maturity dates aggregating to Rs 10,000 crore and sell two securities aggregating to the same amount using the multiple price auction method.
RBI further said it reserves the right to decide on the quantum of purchase/sale of individual securities.
The result of the auctions will be announced on the same day.
